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Subject:  Re: 401k max and and Roth Date:  5/4/2013  9:05 PM
Author:  pauleckler Number:  72196 of 88051

capital gains in a taxable account are given better rates of taxation.

This is only true when held long term.

IRA gives you the flexibility to trade stocks and claim profits when market forces indicate rather than waiting for long term.

In the big crashes of '00 or '07, how many sat on their paper profits and watched them disappear because they did not want to pay income taxes on the profits? Of course now we know they were better off to pay those taxes, but this is never certain until after the fact.
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